Why CRM technology?
5 facts about the clients and service, which explain why crm system is needed:
- The cost of attracting a new customer, on average, is five times more expensive than retaining an existing one.
- A satisfied customer will tell, on an average, 5 of his friends about the successful purchase. Dissatisfied will tell 10 at least.
- Increasing the percentage of customer retention by 5% increases company’s profit by 50-100%.
- About 50% of existing customers are not profitable due to inefficient interaction with them.
CRM is a strategy
Customer Relationship Management is a specific approach to making business, in which the customer is in the cornerstone of the company’s activity. That is, the CRM strategy involves creation of interaction mechanisms with clients in the company, in which their needs have the highest priority for the company. This customer focus not only affects the overall business strategy of the company, but also the corporate culture, structure, business processes and operations.
CRM system is the embodiment of CRM strategy
A very important role in the embodiment of CRM strategy is played by information technology. CRM software is a specialized system designed to automate the business processes, procedures and operations, which are implemented in the form of CRM strategy of the company.
As a key instrument for winning and retaining customers, CRM applications minimize the human factor when working with clients and allow to improve the transparency of activities in the areas of sales, marketing and customer service.
Business process automation
Describing all work processes and formalizing them is a non-trivial task to be solved by business analysts. If all employees act in accordance with regulated processes, this reduces errors, speeds up the work of the company and the results of labor become more predictable.
These objectives can be achieved by automating processes using CRM system. Delivering automation and operational control over the implementation of business processes, CRM system increases the likelihood of timely and quality execution. New employees are quickly up to speed, improve communication between departments. The means of assessing the efficiency of business processes contribute to the optimization of the company as a whole.
Manage customer information
The "heart" of any CRM system is a database of both individuals and legal entities that interact with your company in the framework of the company’s activity. Customer Database itself is a valuable asset, and competent management of data in the CRM system allows to use the information with maximum efficiency for work. The Customer Database is consolidated, the organization receives the full information about their customers and their preferences, and based on these data, builds cooperation strategy.
A single customer database and a complete history of relationships with them in conjunction with powerful CRM analytical tools allows to keep and develop existing customers, identifying the most valuable, as well as attract new customers.
Sales management
Sales planning in the CRM system is organized in different sections (by regions, managers, directions and so on). The manager makes a plan on the basis of data about its customers, taking into account the probability, while the leader, having analyzed the volume of confirmed payments, can make up a promoting plan for the manager.
Leaders have specific requirements for CRM. With the tools of CRM system, the leaders can control the quality parameters of managers (sales funnel), the implementation of sales plans, compliance with the terms of payment and delivery. The system allows to control the volume of transactions and the possibility of transactions, the business processes in sales, monitor the status of the transaction and to analyze the actions of competitors.
One of the most important tasks that the CRM system helps to solve is the organization of cross-sales, up-sales. The system allows to create a matrix of cross-selling and product segment matrix, grouping customers based on various parameters and identify their potential interests.
Offering forecasting and analysis tools, automating interaction of employees with customers and with each other, CRM system forms a prerequisite for the optimization of existing distribution channels and the increase in the company's profits.
Marketing management
CRM system enables an optimal way to organize the company's marketing management: plan and carry out marketing activities, manage resources and budgets for marketing, coordinate all marketing impact.
The employees of the marketing department get a single library of marketing materials, tools for customer segmentation, automation of personalized mailings to the target audience. For measurement of the profitability of campaigns, and the effectiveness of the marketing department, the CRM system offers special analysis tools.
The basic functions of CRM system for the automation of marketing: management of direct marketing campaigns (email, direct mail), organization of research, customer surveys, etc. In the end, such automation helps to improve the work of marketing department and increase customer satisfaction.
Optimization of communication within the company
Low level of communication between staff and departments makes the company’s work ineffective and leads to failure of key business processes. As a result, business profitability is reduced.
CRM system allows to organize the effective interaction and exchange of information within the company, preventing "information gaps" and loss of important information. Using the CRM system in the company will help to synchronize the actions of the staff, to monitor the implementation of the functional roles of the team in the transactions, arrange automatic distribution of tasks between employees of different departments on the basis of the logic of the existing business processes.
Analytical capabilities of CRM system
It is impossible to increase the profitability of the company without a thorough analysis of information about customers, their value and profitability, without identifying "bottlenecks" in the business processes of the company, analysis of sales. CRM system allows the company to obtain statistical information, to carry out a complex analysis of the data, that is needed to make strategic business decisions.
More than 100 standard reports of the system allow to analyze and control all the typical business tasks. With built-in report builder, you can create analytical forms that meet the specific challenges of each company.
In addition, the outcome panel of the CRM system, you can monitor KPI (key performance indicators), the analysis of which will allow the management to evaluate the performance of each employee.
Workflow Automation
CRM system provides all the necessary tools to manage both external and internal document flow of the company. These tools provide the means of automatic formation of documents from templates, preparation of printing forms of documents, support versioning of documents, quick search of documents in the system, creation of electronic document repository and many other things.
When maintaining documentation in the CRM, you can organize collective work on documents with flexible access rights, electronic approval, as well as the reporting of links between the documents.
Product portfolio management
For any commercial organization, it is important to provide products and services of high quality at competitive prices, constantly improve the product line.
CRM system allows to structure nomenclature and manage a complete range of products and services. CRM capabilities provide accounting of special prices and discounts, analyze data and relationships to offer customers the best package of services and to define popular products.